How often when something has gone wrong do you think, 'never mind, I'm insured'?

Things are changing.

In the current economic climate, the insurance market is facing some of its toughest times to date.

The collapse of big market players, reducing interest rates, a growing number of mergers and acquisitions all curtail choice. In addition the economic impact of the horrific terrorist attack on September 11 will mean some Tees Valley firms may not only be facing premiums up to 50pc higher, but some may struggle to get cover at all.

Over many years local company Willett & Ross has been developing its role as experts in risk management.

"We could describe ourselves as an insurance broker. In reality we help people effectively manage risk," said Mike Willett, Managing Director of Willett & Ross.

They understand that most people simply don't think proactively about risk, and have developed a practical and realistic approach to identifying and managing risk.

The launch of their Risk Assessment Solutions service assists in the evaluation of client's likely threats, saves them money and protects their assets.

Mike Willett said "The year 2002 will see unprecedented increases in the cost of business insurance. It's not just that premiums will be higher, some businesses may be faced with the greater danger that they have difficulty purchasing cover at all."

Prior to the catastrophic events in America on September 11, the insurance market was already experiencing turbulent times.

* Out of the last 10 underwriting years, only two were profitable.

* Strain was being placed on the sector by the effect of the compensation culture for personal injury claims - fuelled by the "no win, no fee" legal services.

* A number of insurance companies whose reserves were no longer adequate to be able to cope with the increasing number of personal injury claims have been forced out of business - such as Independent Insurance Company, Iron Trades, The Drake and Chester Street.

* Consolidations and mergers have cut market choice.

But since the terrorist attack on New York's World Trade Centre the problems have been amplified.

"The effect of September 11 on the insurance market in financial terms is reported as seeing claims totalling in excess of #74bn," said Mr Willett.

"The effect on the financial markets has been to reduce share values - as this figure drops so does the amount of business they are allowed to underwrite.

"The result is a number of insurers have been forced to close their doors and say 'no' to taking on new business - particularly in the heavy liability sectors where there are already capacity problems."

He added: "Most of the re-insurance contracts bought by the major insurers are due for renewal on January 1 and negotiations for new re-insurance treaties are currently underway.

"There is no doubt the cost of re-insurance has increased considerably, increasing the adverse effect on insurance covers and premiums."

"In the present environment companies must assess their risk exposure and decide on a strategy."

The risk analysis offered by Willett & Ross involves looking at 15 aspects of a business.

These are areas that have the potential to destabilise many firms if not properly managed - such as employment procedures, IT security and disaster planning.

Once the review has been carried out - which usually takes half a day - a detailed report is prepared including a simple 'traffic light' display for how each section is operating - from green for on target, through to red highlighting problem areas, both in terms of risk exposure and level of management.

Willett & Ross Business Managers will visit your workplace to look at every aspect of the operation from "the boss" down to the shop floor.

"Willett & Ross doesn't just leave the customer with the problems," said Mr Willett.

"We stick with you and help you resolve them."

Willett & Ross can either advise the firm how to carry out the changes themselves, or tap into a pool of experts to work with them to get things right.

Each problem area is tackled individually with a check made every three months to see if problem areas have been corrected.

A review of the business is carried out 12 months on to gauge how much progress has been made.

Willett & Ross use state-of-the-art technology, to carry out the company 'health check'.

Often common sense can put right an issue that could have the potential to destroy or severely hamper the progress of a company.

For example figures show 80pc of firms that suffer a major fire go out of business within three years.

Yet less than 5pc have any form of disaster recovery plan, less than 20pc operate reliable health and safety procedures and under a quarter back up their computer data reliably.

A firm with a high number of insurance claims for vehicle accidents may need something as simple as driver safety training course to put things right.

"Companies have to make themselves more attractive to insurance companies," explained Mr Willett.

"Most businesses accept the logic of carefully examining the risk before embarking on a programme to safeguard the business, but only a few put it into practice.

"Instead they skip the medical, bypass the diagnosis and move hastily to the treatment - they take out insurance!"

"If you can't insure against something, risk management is your only option. Where you can insure, you should expect your insurance company to be enthusiastic and ready to reward your efforts when pricing premiums."

"Our aim is to ensure customers take an enlightened approach to managing risk, enabling them to minimise liability and maintain business continuity, creating a healthier and fitter business," added Mike Willett.

The new service is the latest to be offered by Willett & Ross, which moved to its new base at Scotswood House at Teesdale South, Thornaby, at the start of the year and now employs a workforce of almost 50.

A dedicated team of six work on the risk management service. For further information contact one of our business management team on 01642 666000, fax 666001. E-mail: recep@willett-insurance.co.uk